INVESTING WISELY IN A TROUBLED MARKET

Have you ever noticed that successful real estate investors often purchase real estate when the market is not strong? Many would say they are lucky. I say they make their own luck. These people use their knowledge of real estate cycles to their benefit. They are people with vision who watch the trends and recognize opportunities when they become apparent. They use their knowledge of the fundamentals to make sound decisions and are ready to buy when the opportunity presents itself.

What you can do to assure that you will make the right decision:
1. Research the local market and the price range you are prepared to buy in.
a. Identify all current area listings that are $50,000 above and below the price point you are interested in.
b. Identify and fully study the area sales that have occurred $50,000 above and below the price you are considering.
c. Determine the current inventory (months of listings).
2. When you find a property that interests you.
a. Research to find out which nearby properties may be in financial trouble. (identify current debt/check foreclosure notices)
b. Identify the most recent sales in the neighborhood and determine how the sale price of each compares to it’s last sale price. (appreciation/depreciation)
c. Determine:
i. are there any unsold new homes/units in the neighborhood,
ii. how long have those properties been on the market,
iii. have there been any price reductions, and
iv. what percentage of units are still owned by the developer.
3. Treat the purchase like an investment - don’t buy on emotion.
4. Always have the property appraised and thoroughly inspected by licensed professionals.
5. Align with an agent that can provide you with a depth of real estate knowledge and experience.

This is a time when people with the ability to buy have a competitive advantage. With higher than average inventories and many troubled properties in the market, this is a great time to buy real estate.

Call 860-912-8167 to reserve a seat for our next seminar titled ‘Investing Wisely In A Troubled Market”
to be held at 9 AM, Saturday, July 12th, 102 Front Street, Noank, adjacent to the Noank Village Boatyard.